Definitions
In plain terms
Rolling security prices are not made normally distributed, independent, or inferentially valid by drawing standard-deviation bands.
Technical
The creator's guidance warns against statistical assumptions because the price distribution is non-normal and typical windows are small.
Scope
Any probabilistic coverage or forecast claim requires a separately specified model and empirical validation.
Examples
- A reviewer traces Bollinger Confidence-Interval Misinterpretation from aligned inputs through its first-ready row and edge cases before accepting a displayed value.
Common misconceptions
- Any probabilistic coverage or forecast claim requires a separately specified model and empirical validation.
Concept relationships
Prerequisites
Related
Where this concept is used
Evidence and governance
- Bollinger Bands Rules John Bollinger · first party methodology
Supports: preferred label, short definition, technical definition
Limits: Interpretive rules do not prove forecasting power, trade profitability, or one universal parameter selection.
- Measures of Scale NIST/SEMATECH · official standard
Supports: preferred label, short definition, technical definition
Limits: The statistical reference does not define Bollinger Bands or validate financial forecasts from price dispersion.
- Reviewed by
- fintech-builder-batch-009
- Last reviewed
- 2026-07-30
- Next review
- 2027-07-30
- Record status
- published